Back to top

Image: Bigstock

NextEra Energy (NEE) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

NextEra Energy (NEE - Free Report) closed the most recent trading day at $82.37, moving +1.59% from the previous trading session. This change lagged the S&P 500's 1.97% gain on the day. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.24%.

Coming into today, shares of the parent company of Florida Power & Light Co. Had lost 5.39% in the past month. In that same time, the Utilities sector lost 9.76%, while the S&P 500 lost 9.93%.

Wall Street will be looking for positivity from NextEra Energy as it approaches its next earnings report date. On that day, NextEra Energy is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 2.67%. Meanwhile, our latest consensus estimate is calling for revenue of $6.28 billion, up 43.72% from the prior-year quarter.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $20.2 billion. These results would represent year-over-year changes of +13.33% and +18.34%, respectively.

Any recent changes to analyst estimates for NextEra Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. NextEra Energy is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 28.07. This valuation marks a premium compared to its industry's average Forward P/E of 17.76.

It is also worth noting that NEE currently has a PEG ratio of 2.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.01 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

NextEra Energy, Inc. (NEE) - free report >>

Published in